Record High Egg Prices Fuel Shortages and Consumer Concern

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Record High Egg Prices Fuel Shortages and Consumer Concern
EGGSBIRD FLUPRICES
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The US is facing a severe egg shortage and record-high prices due to an ongoing bird flu outbreak. The average price of a dozen Grade A eggs reached $4.95 in January, surpassing the previous record and more than doubling the low from August 2023. The outbreak has led to the culling of millions of birds, disrupting the supply chain and leaving many grocery stores struggling to keep their shelves stocked.

The price of eggs hit a record high in the U.S. as the country grapples with a persistent bird flu outbreak. While the official government figures released Wednesday confirmed that the average price of a dozen Grade A eggs in U.S. cities reached $4.95 in January, surpassing the previous record of $4.82 set two years ago and more than doubling the low of $2.04 recorded in August 2023, consumers were already acutely aware of the escalating costs and occasional shortages.

This surge in egg prices, the largest since the nation's last bird flu outbreak in 2015, accounted for roughly two-thirds of the total increase in food costs last month, according to the U.S. Bureau of Labor Statistics. However, the nationwide average masks the reality on the ground. In some areas, a carton of eggs can cost $10 or more. Specialized varieties, such as organic and cage-free eggs, are even more expensive.'We do use eggs a little less often now. You know, because of the price,' said Jon Florey, as he surveyed his options in the egg case at Encinal Market in Alameda, California. 'I was going to make a quiche that I like to make and it’s about six eggs, so I figured I’d do something else.' The high demand during the holiday season further exacerbated the situation, and the U.S. Department of Agriculture predicted last month that egg prices were likely to increase by 20% this year. Some grocers are struggling to keep their shelves stocked, and customers are encountering surcharges and limits on the number of cartons they can purchase. Joe Trimble, the owner of Encinal Market, said he has difficulty obtaining all the eggs he orders from his suppliers, resulting in his shelves being about 25% full most of the time. 'It’s something you don’t think about until you look at the shelf and it’s nearly empty,' Trimble said. Eggs are 'just expected to be there in the same way you expect there to be milk. It’s a key item to have in a grocery store because people don’t go out looking for something else to eat on a Saturday morning. They want it. They want to have some scrambled eggs or over-easy eggs on a Saturday morning.'The bird flu outbreak is the primary culprit behind these supply chain disruptions. When the virus is detected on a farm, the entire flock is culled to prevent the spread of disease. Since massive egg farms can house millions of birds, a single outbreak can significantly impact the egg supply. Nearly 158 million birds have been slaughtered overall since the outbreak began, with the Agriculture Department reporting that over 23 million birds were slaughtered last month and more than 18 million were killed in December to contain the spread of the bird flu virus. While these numbers include turkeys and chickens raised for meat, the vast majority were egg-laying chickens.Furthermore, recovering from an outbreak takes time. It can take several months to dispose of carcasses, sanitize barns, and raise new birds until they are old enough to start laying eggs, prolonging the effects on the supply chain. Bird flu cases often surge in the spring and fall when wild birds migrate, as they are the primary source of the virus, but outbreaks can occur at any time of year. The virus has also spread to cattle and other species, and dozens of people—mostly farmworkers caring for sick animals—have been infected. However, the risk to human health remains low, and eggs and poultry are safe to consume because sick animals are not allowed into the food supply. Proper cooking of meat and eggs to at least 165 degrees Fahrenheit kills any virus, and pasteurization neutralizes bird flu in milk.Egg farmers are facing multiple challenges, including higher feed, fuel, and labor costs due to inflation. Farmers are also investing more in biosecurity measures to protect their birds. Ten states have enacted laws permitting the sale of only cage-free eggs. The supply of these eggs is more limited and concentrated in specific regions, so the impact on prices can be amplified when outbreaks strike cage-free egg farms. Many of the egg farms with recent outbreaks were cage-free farms in California. Cage-free egg laws have already gone into effect in several other states, and more are considering similar regulations.Total demand for eggs has also risen substantially in recent years. Consumers are purchasing more eggs, and the growth of all-day breakfast restaurants is contributing to the demand. Brian Earnest, an analyst at CoBank, stated that the current cost of eggs could discourage some buying, which would alleviate demand pressure but might not be immediately noticeable. It will likely take months for egg producers to replenish the supply gaps. 'As consumers continue to stock up on eggs, supplies at the store level will remain tight, and with Easter right around the corner, that could prolong the tighter supplies,' Earnest said. While prices remain elevated, producers of baked goods and other food items that rely on eggs as a key ingredient will have to determine how much to increase prices or reduce production, he added.

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EGGS BIRD FLU PRICES SHORTAGE FOOD CRISIS SUPPLY CHAIN AGRICULTURE CONSUMER COST OF LIVING

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